[Federal Register Volume 75, Number 151 (Friday, August 6, 2010)]
[Notices]
[Pages 47670-47672]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-19334]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-62617; File No. SR-NASDAQ-2010-092]
Self-Regulatory Organizations; The NASDAQ Stock Market LLC;
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change
To Add Seventy-Five Options Classes to the Penny Pilot Program
July 30, 2010.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 \2\ thereunder, notice is hereby given
that on July 22, 2010, The NASDAQ Stock Market LLC (``Nasdaq'') filed
with the Securities and Exchange Commission (``SEC'' or ``Commission'')
the proposed rule change as described in Items I and II, which Items
have been prepared by Nasdaq. The Commission is publishing this notice
to solicit comments on the proposed rule change from interested
persons.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
Nasdaq is filing with the Securities and Exchange Commission
(``SEC'' or ``Commission'') a proposal for the NASDAQ Options Market
(``NOM'' or ``Exchange'') to designate seventy-five options classes to
be added to the Penny Pilot Program (``Penny Pilot'' or ``Pilot'') on
August 2, 2010.\3\ The Exchange is not
[[Page 47671]]
proposing to amend any rule text, but simply administering or enforcing
an existing rule.\4\
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\3\ The Penny Pilot was established in March 2008 and in October
2009 was expanded and extended through December 31, 2010. See
Securities Exchange Act Release Nos. 57579 (March 28, 2008), 73 FR
18587 (April 4, 2008)(SR-NASDAQ-2008-026) (notice of filing and
immediate effectiveness establishing Penny Pilot); 60874 (October
23, 2009), 74 FR 56682 (November 2, 2009) (SR-NASDAQ-2009-091)
(notice of filing and immediate effectiveness expanding and
extending Penny Pilot); 60965 (November 9, 2009), 74 FR 59292
(November 17, 2009) (SR-NASDAQ-2009-097) (notice of filing and
immediate effectiveness adding seventy-five classes to Penny Pilot);
61455 (February 1, 2010), 75 FR 6239 (February 8, 2010) (SR-NASDAQ-
2010-013) (notice of filing and immediate effectiveness adding
seventy-five classes to Penny Pilot); and 62029 (May 4, 2010), 75 FR
25895 (May 10, 2010) (SR-NASDAQ-2010-053) (notice of filing and
immediate effectiveness adding seventy-five classes to Penny Pilot).
\4\ See Chapter VI, Section 5 regarding the Penny Pilot.
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The text of the proposed rule change is available from Nasdaq's Web
site at http://nasdaq.cchwallstreet.com/Filings/, at Nasdaq's principal
office, and at the Commission's Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, Nasdaq included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. Nasdaq has prepared summaries, set forth in sections A,
B, and C below, of the most significant aspects of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The purpose of this filing is to identify the next seventy-five
options classes to be added to the Penny Pilot effective August 2,
2010.
In the Exchange's immediately effective filing to extend and expand
the Penny Pilot through December 31, 2010,\5\ the Exchange proposed
expanding the Pilot four times on a quarterly basis. Each such
quarterly expansion would be of the next seventy-five most actively
traded multiply listed options classes based on the national average
daily volume (``ADV'') for the six months prior to selection, closing
under $200 per share on the Expiration Friday prior to expansion;
however, the month immediately preceding the addition of options to the
Penny Pilot will not be used for the purpose of the six-month analysis.
Index option products would be included in the quarterly expansions if
the underlying index levels were under 200.
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\5\ See Securities Exchange Act Release No. 60874 (October 23,
2009), 74 FR 56682 (November 2, 2009) (SR-NASDAQ-2009-091) (notice
of filing and immediate effectiveness).
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The Exchange is identifying, in the chart below, seventy-five
options classes that it will add to the Penny Pilot on August 2, 2010,
based on ADVs for the six months ending June 30, 2010.
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Nat'l ranking Symbol Security name Nat'l ranking Symbol Security name
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199............... MBI MBIA Inc. 316.............. CB Chubb Corp.
205............... MA Mastercard Inc. 320.............. ADM Archer-Daniels-
Midland Co.
224............... ATPG ATP Oil & Gas 322.............. HSY Hershey Co./The
Corp/United
States
226............... YUM Yum! Brands Inc 323.............. TXT Textron Inc.
232............... RCL Royal Caribbean 324.............. GGP General Growth
Cruises Ltd. Properties Inc.
238............... BPOP Popular Inc. 325.............. NOV National Oilwell
Varco Inc.
248............... EK Eastman Kodak Co. 326.............. TWX Time Warner Inc.
252............... CNX Consol Energy 327.............. XOP SPDR S&P Oil &
Inc. Gas Exploration
& Production
ETF.
260............... DCTH Delcath Systems 328.............. MYL Mylan Inc./PA.
Inc.
274............... MTG MGIC Investment 329.............. TSO Tesoro Corp.
Corp.
277............... PXP Plains 330.............. CI CIGNA Corp.
Exploration &
Production Co.
278............... GPS Gap Inc./The 331.............. ESI ITT Educational
Services Inc.
280............... TSL Trina Solar Ltd. 332.............. NKE NIKE Inc.
282............... EWW iShares MSCI 335.............. FIS Fidelity
Mexico National
Investable Information
Market Index Services Inc.
Fund
283............... CRM Salesforce.com 336.............. SUN Sunoco Inc.
Inc.
286............... SWN Southwestern 338.............. BBBY Bed Bath &
Energy Co. Beyond Inc.
287............... HBAN Huntington 340.............. APWR A-Power Energy
Bancshares Inc./ Generation
OH Systems Ltd.
288............... EOG EOG Resources 341.............. FWLT Foster Wheeler
Inc. AG.
290............... APA Apache Corp. 342.............. LNC Lincoln National
Corp.
291............... VVUS Vivus Inc. 343.............. RSH RadioShack Corp.
292............... JDSU JDS Uniphase 344.............. TYC Tyco
Corp. International
Ltd.
293............... ACI Arch Coal Inc. 345.............. CL Colgate-
Palmolive Co.
294............... NE Noble Corp. 346.............. FXP ProShares
UltraShort FTSE/
Xinhua China
25.
296............... BAX Baxter 347.............. NTAP NetApp Inc.
International
Inc.
297............... ADSK Autodesk Inc. 348.............. SO Southern Co.
299............... KRE SPDR KBW Regional 349.............. PHM Pulte Group Inc.
Banking ETF
300............... XL XL Group Plc 350.............. HOT Starwood Hotels
& Resorts
Worldwide Inc.
302............... WLT Walter Energy 351.............. QLD ProShares Ultra
Inc. QQQ.
303............... IBN ICICI Bank Ltd. 352.............. VRSN VeriSign Inc.
305............... EWY iShares MSCI 353.............. PCL Plum Creek
South Korea Timber Co. Inc.
Index Fund
306............... WHR Whirlpool Corp. 354.............. NBR Nabors
Industries Ltd.
307............... BHI Baker Hughes Inc. 355.............. ESRX Express Scripts
Inc.
308............... KMP Kinder Morgan 356.............. ACAS American Capital
Energy Partners Ltd.
LP
309............... MRO Marathon Oil 357.............. XLNX Xilinx Inc.
Corp.
310............... AGO Assured Guaranty 358.............. DO Diamond Offshore
Ltd. Drilling Inc.
311............... GIS General Mills 359.............. CMA Comerica Inc.
Inc.
312............... ANR Alpha Natural 360.............. KEY KeyCorp.
Resources Inc.
[[Page 47672]]
314............... GENZ Genzyme Corp.
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2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act \6\ in general, and furthers the objectives of Section
6(b)(5) of the Act \7\ in particular, in that it is designed to prevent
fraudulent and manipulative acts and practices, to promote just and
equitable principles of trade, to foster cooperation and coordination
with persons engaged in facilitating transactions in securities, and to
remove impediments to and perfect the mechanisms of a free and open
market and a national market system, by identifying the options classes
to be added to the Penny Pilot in a manner consistent with prior
approvals and filings.
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\6\ 15 U.S.C. 78f(b).
\7\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition
Nasdaq does not believe that the proposed rule change will result
in any burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants or Others
Written comments were neither solicited nor received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The proposed rule change is filed for immediate effectiveness
pursuant to Section 19(b)(3)(A) \8\ of the Act and Rule 19b-4(f)(1) \9\
thereunder as it constitutes a stated policy, practice, or
interpretation with respect to the meaning, administration, or
enforcement of an existing rule. At any time within 60 days of the
filing of the proposed rule change, the Commission summarily may
temporarily suspend such rule change if it appears to the Commission
that such action is necessary or appropriate in the public interest,
for the protection of investors, or otherwise in furtherance of the
purposes of the Act.
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\8\ 15 U.S.C. 78s(b)(3)(A).
\9\ 17 CFR 240.19b-4(f)(1).
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IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
Send an e-mail to [email protected]. Please include
File Number SR-NASDAQ-2010-092 on the subject line.
Paper Comments
Send paper comments in triplicate to Elizabeth M. Murphy,
Secretary, Securities and Exchange Commission, 100 F Street, NE.,
Washington DC 20549-1090.
All submissions should refer to File Number SR-NASDAQ-2010-092. This
file number should be included on the subject line if e-mail is used.
To help the Commission process and review your comments more
efficiently, please use only one method. The Commission will post all
comments on the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments,
all written statements with respect to the proposed rule change that
are filed with the Commission, and all written communications relating
to the proposed rule change between the Commission and any person,
other than those that may be withheld from the public in accordance
with the provisions of 5 U.S.C. 552, will be available for Web site
viewing and printing in the Commission's Public Reference Room, 100 F
Street, NE., Washington, DC 20549, on official business days between
the hours of 10 a.m. and 3 p.m. Copies of such filing also will be
available for inspection and copying at the principal office of the
Exchange. All comments received will be posted without change; the
Commission does not edit personal identifying information from
submissions. You should submit only information that you wish to make
available publicly. All submissions should refer to File No. SR-NASDAQ-
2010-092 and should be submitted on or before August 27, 2010.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\10\
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\10\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-19334 Filed 8-5-10; 8:45 am]
BILLING CODE 8010-01-P